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Laurel Hills, #12-00030

Laurel Hills Condominiums Property Owners Association, LLC, #12-00030

On April 10, 2012, Laurel Hills Condominiums Property Owners Association, LLC, petitioned the Authority for a Certificate of Public Convenience and Necessity (CCN) to provide water service to Renegade Mountain near Crossville, Tennessee. Laurel Hills further requested approval of proposed tariffs consisting of terms and conditions of service, including schedules for monthly water rates; after amending its original petition, Laurel Hills asked for a monthly rate of $134.26 per customer.

The Consumer Advocate, designated members of the Tennessee Regulatory Authority (TRA) staff known as the Investigative Staff, and a group of customers known as "Customer Intervenors" joined in opposition to the CCN and rate request.

The hearing on the merits was conducted before the TRA on February 13, 2013, and the order was issued on April 8, 2013. The TRA ordered that Laurel Hills did not have sufficient managerial or financial capabilities to operate the water system. The TRA noted that while Laurel Hills appeared to have hired someone with sufficient technical capability to run the water system, Laurel Hills' nonpayment to this individual gave rise to significant concerns that the technical capability was not secure. Consequently, and consistent with the recommendations of the Consumer Advocate, the Customer Intervenors, and the Investigative Staff, the TRA ordered Laurel Hills to divest in 60 days. The TRA also recommended staff request the Office of the Comptroller to value the water system for sale and indicated that the TRA would need to approve the buyer to help ensure that the subsequent owner will have the sufficient managerial, financial, and technical capability to run the water system.

Until the system is sold, the TRA authorized a monthly rate of $33.10, which is a temporary rate that will not necessarily apply to subsequent buyers. Much of this rate is consistent with the Consumer Advocate's requests for the basis of rates.

Tennessee Regulatory Authority Filings

This list includes only significant filings and is not intended to be a complete record of the matter.